Home stagers, interior designers thrive in a weak market

December 14, 2007|By Leslie Mann, Special to the Tribune

Yes, housing starts are down and inventories are up. But it's not all bad, say those in the industry. In fact, many liken it to an overgrown garden, where production houses have spread like dandelions and spec builders used seeds (proceeds) from previous houses to grow subsequent projects. Now, slower sales are causing everyone to take the time to weed their crops.

While many builders are tending fields of unsold houses, businesses such as home stagers and auctioneers are blooming. And those in the real estate industry are looking ahead.

"It's not as bad here as it is in areas like Nevada and Florida," said John Veneris, broker/owner of Realty Executives Pro/Team in Downers Grove "Here, if a home is priced right and is in pristine condition, it sells. But, because buyers have more to choose from, they are being picky."

GraceAnn Simoni is among the business people who are profiting by helping sellers get their homes in pristine condition.

"The staging part of my business has doubled since I started it in 2001," said Simoni, owner of Yours Redesigned in Naperville. "But the redesigning and 'move in' have just been steady."

As a stager, Simoni helps sellers and Realtors spruce up homes for sale.

"This is especially important in a neighborhood where all the houses look the same," said Simoni. "Yours won't sell unless it looks the best."

Interior designers are reaping the benefits of the downturn, too.

"Slapping a coat of paint on the walls no longer sells a house," said designer Jaymes Richardson, co-owner of Civility Design in Chicago. "Now, you may have to update the old kitchen or bathroom. This isn't just to attract buyers, but also for the lender, who appraises the house higher if it has been remodeled.

"Used to be, the buyer would say she'll buy the house now and get a home equity loan later to update its '50s bathroom. But now she wants the remodel rolled into the price of the house. She isn't willing to live in a remodeling war zone. She wants the seller to do that."

In addition to catering to sellers, Richardson and others say they are getting more business from homeowners who have decided to stay put and remodel instead of moving during the downturn.

Nationwide, said the NAHB, remodeling sales were $228 billion in 2006, up from $215 billion in 2005. "Our sales are up, thanks to new kitchens and master bathrooms, especially," said Rick Glickman, president of Dream Kitchens Inc. in Skokie "As long as they are staying, [homeowners] are giving themselves that spa bathroom they always wanted, for example, with a whirlpool tub, shower with body sprays, heated towel rack and coffee station."

Palatine remodeler David Kunzweiler added: "After looking at new houses, but deciding not to move now, they go home and look at their old kitchen and say, 'This looks awful. Let's remodel.'"

Architects echo the trend.

"My calls for new construction have slowed a little, but I'm doing a lot more remodeling and additions," said Cinda Lester, owner of 12-12 Architects & Planners in Downers Grove. "I hear a lot of 'my house doesn't work for us but we can't afford to move now.' They want more efficient space, not showy-showy. Instead of formal dining rooms or two-story foyers, they want more closet space or home offices."

Serving the remodeling surge are retailers including Prather Paint Corp. in Wilmette. Owner Bruce Ekstrand said, "This is our best year ever. People are staying and fixing up what they have." His custom paints and 18- inch by-24-inch paint chips are flying out the door, he said.

Meanwhile, business is booming in the auction industry. Nationwide, residential auctions are up 39 percent since 2003, said the National Auctioneers Association.

"Our real estate business has doubled every year for the last six years," reported Monte Lowderman, co-owner of McCombbased Lowderman Auction Co., which sells homes statewide. This includes homes sold by sellers who can no longer afford to pay their mortgages and by banks that have foreclosed homes. The homes range from modest to $2.5 million, he added.

Not all homes sold by auction are foreclosure homes, though, said Lowderman.

"Although selling by auction has been the norm for farmland and for residences in Europe for years, there was a stigma attached to residential auctions here," said Lowderman. "But that's not the case anymore, partially thanks to eBay making 'auction' a household word. Sellers realize that using an auction sells the house quickly, so they don't have to pay carrying costs like property taxes and insurance while it sits on the market."

Meanwhile, some small businesses have altered their services to weather the downturn.

When sales slowed at Jennifer Prell's Cary-based Paxem packing/ unpacking/organizing company, she started a second, related company, Silver Connections. The latter provides housing referrals to seniors, while senior communities in Illinois and Wisconsin foot the bill.